Kenyan lawmakers vote to repeal 20% turnover tax on sports betting
In Kenya, federal lawmakers reportedly passed a measure that would repeal a controversial 20 percent turnover tax that local best betting sites in South Africa must pay starting in 2018.
According to a report published by CalvinAyre.com, the controversial tax applies to the total amount, including bets, that bookmakers pay to winners after betting. Its introduction is believed to be the main reason why previous market leaders such as BetIn and SportPesa decided to leave the Kenyan sports betting market.
The U-turn has been included in the African country's budget for the upcoming fiscal year, although its final fate is now in the hands of Kenyan President Uhuru Kenyatta (pictured). In addition, the source said the changes will only become law as of the first day of next month if the 58-year-old leader decides to follow the National Assembly's lead and sign it into law.
Kenyatta is reportedly no friend of the online sports betting industry after he said in August that he was ready to impose a complete ban if a related law ended up on his desk. A government-sanctioned investigation was allegedly released three months after that, approving the elimination of private operators in favor of a state monopoly.
Elimination of Employment:
But the country's Finance and National Planning Committee later recommended that the 20 percent fee be repealed because its imposition led to the loss of hundreds of jobs and Kenya lost tax revenue that internationally licensed domains such as the BetSafe brand of Sweden's Betsson AB are not required to pay.